The Potential of Stocks

The stock market is an internationally known market that is not well understood. As many as 55% of adult Americans invested in the stock market in 2020 according to a statista.com graph. Stocks, along with the new and rising system known as cryptocurrency, are promising investment strategies that deserve more attention from the youth. 

With such a large population investing and utilizing the stock market, why is it not well understood? The lack of understanding comes from the intimidation of the market. Having to learn unfamiliar terms and their inner workings may frighten newcomers to the stock world. Some refer to it as “learning a new language,” and in a way it is. Terms like “volatility,” “liquidity,” and dozens more can be complex to any stock market newbie, however websites like www.stockstotrade.com and www.marketbeat.com can help to better understand these overwhelming phrases. 

A common misconception about investing is that teenagers are not allowed to do so. Contrary to widespread belief, custodial accounts are offered that allow minors to buy and sell stocks while a guardian is over the legalities of the account. According to article by Ed Canty of investingsimple.com states, “A custodial account is great for a number of reasons as it provides a way to transfer wealth and can be used for more than just college expenses or to provides tax benefits.” Starting stocks early can be beneficial or devastating to those who take the risk of investing, and it depends if someone is willing to take the risk.  

Here at Calloway, we have many students who are invested in the stock market and other types of cryptocurrencies. One student who has seen recent success is senior Kevin Dawson. He started at the end of 2020, working through 2021 to see a 5.52% increase in profit from what he started with. Kevin states, “There’s a learning curve to it. It’s pretty easy to learn but you can always go more in depth.” By using the Baird app, Dawson has managed to start a nest egg for his retirement and his future business.  

Regardless of starting position, anyone can learn how to use the stock market. With a good bit of research and the stock owner willing to take risks, the market can be utilized to make a profit and save for their future.